Understanding OKEX Perpetual Contracts
Perpetual contracts are derivative products designed to mimic spot trading without an expiration date. They maintain price alignment with underlying assets through two key mechanisms:
- Funding Rates: Periodic payments between long and short positions to balance the market
- Mark Price System: Uses a calculated "fair price" to prevent unnecessary liquidations
These contracts appeal to traders seeking continuous exposure without managing expiration dates.
Trading OKEX Perpetual Contracts: Step-by-Step
1. Contract Selection
OKEX offers three contract types:
- Weekly (expires nearest Friday)
- Bi-weekly (expires second Friday)
- Quarterly (expires March/June/Sept/Dec last Friday)
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2. Position Execution
Key requirements:
- Minimum equity ≥ position value / leverage ratio
- Order types include limit, market, and stop orders
3. Margin Models
| Feature | Cross Margin | Isolated Margin |
|---|---|---|
| Risk Calculation | Portfolio-wide | Position-specific |
| Liquidation | Below 10% (10x) or 20% (20x) of equity | Per-position maintenance margin |
| Flexibility | Can adjust positions freely | Requires separate margin allocation |
4. Position Management
After execution:
- Monitor mark price (not last traded price) for P&L
- Adjust leverage or close positions as needed
- Use stop-loss/take-profit orders strategically
5. Settlement Process
For weekly/bi-weekly contracts:
- Positions settle at expiration index price
- Profits credited to realized P&L
- Losses distributed per insurance fund rules
Core Trading Mechanisms
Funding Rate Calculation
Funding Fee = Position Value × Funding Rate- Rates adjust every 8 hours (vs BitMEX's 24h)
- Positive rate: Longs pay shorts
- Negative rate: Shorts pay longs
Price Index Composition
OKEX's mark price combines:
- Weighted average of major exchange prices
Moving average of basis spread:
Basis = (Ask + Bid)/2 - Spot Index
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Fee Structure and Calculations
OKEX uses maker-taker fee model:
- Makers (provide liquidity): 0.02% rebate
- Takers (remove liquidity): 0.05% fee
- Fees deducted from position currency
Example calculation:
Fee = Contract Value × 0.05%For a $10,000 BTC contract:
$10,000 × 0.0005 = $5Risk Management Features
Auto-Deleveraging (ADL)
- Triggers during extreme volatility
- Closes over-leveraged positions by profit priority
Insurance Fund
- Covers residual losses after ADL
- Funded by liquidated positions' remaining margin
Price Protection
- 5-second delayed mark price during volatility
- Prevents cascade liquidations
FAQ Section
Q: How often are funding payments exchanged?
A: Every 8 hours at 04:00, 12:00, and 20:00 UTC.
Q: What happens if I hold through expiration?
A: Weekly/bi-weekly contracts auto-settle at mark price. Perpetual contracts continue rolling.
Q: How is liquidation price calculated?
A: For 10x cross margin: Entry price × (1 ± 10%/leverage). Use OKEX's calculator for precision.
Q: Why use mark price instead of last price?
A: Prevents market manipulation and false liquidations during low liquidity.
Q: Can I change margin modes mid-trade?
A: Only with zero positions and pending orders. Plan your strategy beforehand.
Q: Where can I view historical funding rates?
A: Available in OKEX's "Contract Details" section under each perpetual market.
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